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ConAgra raises $488m from sale of JM Swank, Spicetec Flavors & Seasonings

FBR Staff Writer Published 26 July 2016

US-based packaged foods firm ConAgra Foods has raised nearly $488m in combined net proceeds from the sale of JM Swank and Spicetec Flavors & Seasonings.

ConAgra said that it has completed the sale of JM Swank business to Platinum Equity and the sale of its Spicetec Flavors & Seasonings business to Givaudan.

ConAgra president and chief executive officer Sean Connolly said: “The completion of these two divestitures is another step on our journey to becoming a more focused and higher performing company.

“We truly appreciate the contributions of the JM Swank and Spicetec Flavors & Seasonings employees, and we’re confident that both companies will be well positioned for continued growth as part of Platinum Equity and Givaudan, respectively.”

In May, ConAgra entered into an agreement to sell its Spicetec Flavors & Seasonings business to Givaudan for $340m.

 The agreement involved transition of around 280 employees and facilities in Cranbury, New Jersey and Carol Stream in Illinois.

In June, it signed an agreement with Platinum Equity to sell its food ingredient sourcing and distribution company JM Swank for an undisclosed sum.

The sale of JM Swank is part of ConAgra's strategy to restructure its businesses as it struggles with poor demand for its products.

Last year, ConAgra sold its private-label operations to TreeHouse Foods for $2.7bn. This sale was intended to help the company focus better on its core offerings.

The $2.7bn transaction, included sale of most of ConAgra's private label businesses that are categorized as discontinued operations. These operations include 32 production units in the US, Canada and Italy.